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Buying or Selling First? Decoding the Halifax Homeowner's Dilemma

Lorenzo Gallardo
Oct 21 1 minutes read

When the time comes to change homes in Greater Halifax, Nova Scotia—whether you’re upsizing, downsizing, or just looking for a change in scenery—one major question looms: Should you buy your next home before selling your current one, or sell before you buy? It's a significant decision, and the right answer varies depending on personal circumstances and market conditions. Here’s a comprehensive look at both sides to guide you through your decision.

Buying First: The Good and The Challenging

The dream home appears on the market, and it's love at first sight. The urge to buy right away before anyone else snaps it up is understandable, especially in the fast-paced Halifax real estate market. But, let’s weigh the benefits and challenges.

Pros:

* No Need for a Pit Stop: Buying your next home first means you skip the headache of finding a place to crash temporarily. Move directly from your old home into the new one at a pace that suits you, avoiding storage fees or the awkwardness of crashing on a friend’s couch.

* Leisurely Move: Secure your new place, and then take your sweet time moving. This option cuts down on the frenzied rush of moving out and lets you transfer your life’s possessions on your timeline, which is always a plus.

Cons:

* The Financial Juggling Act: Holding onto two properties means double the mortgages (unless you're buying in cash), plus the ongoing expenses for both. It's not just about having the funds but managing the cash flow without dipping too far into savings.

* The Rush to Sell: Holding two properties in HRM can press you to sell your current home sooner than you might like. The need to free up finances could force you into accepting a lower offer than you’d hope for in a tight market.

Selling First: The Financially Savvy and The Not-So-Savvy

Then there’s the sell-before-you-buy strategy, offering financial clarity but also presenting its unique challenges.

Pros:

* Mortgage-Free (For a Bit): Selling your home first frees you from the burden of multiple mortgages or the need for a bridge loan. Knowing your exact budget for the next purchase can streamline the process and possibly give you an edge in negotiations.

* Cash in Hand Empowers: With the proceeds from your sale ready, you can make compelling offers on your next property, particularly useful in competitive markets like Halifax’s, where sellers might favour buyers who have the funds readily available.

Cons:

* The Interim Period Puzzle: Sell your home without the next one lined up, and suddenly, you’re hunting for temporary housing. This transitional phase can be a hassle, whether that means renting short-term, exploring extended stay options, or storing your belongings.

* The Rush for Closure: Once your home sells, the clock starts ticking. This situation might expedite your buying decision, leading you to settle on a home that isn’t quite what you wanted, simply to avoid prolonged temporary housing.

So, What’s Your Move in HRM?

There's no clear-cut answer, but consider these factors:

1. Current Market Conditions: Halifax’s real estate market leans towards sellers, with demand typically outpacing supply, especially in popular neighbourhoods. A seller’s market suggests selling first might be the more comfortable route, ensuring a swift sale. But market dynamics can fluctuate, so keep a pulse on current trends.

2. Your Financial Situation: Assess your financial resilience. Can you bear the burden of two mortgages if you choose to buy first? If that thought makes you sweat, selling first may alleviate potential financial strain.

3. Risk Tolerance: How do you handle uncertainty and financial overlap? If the idea of a double mortgage keeps you up at night, consider selling first. Conversely, if you have the financial buffer and patience, buying first might afford you a more relaxed transition.

Alternatives: Bridging the Gap and Playing It Safe with Contingency Offers

If you find neither traditional route appealing, there are other paths:

* Bridge Loans: A temporary solution to finance your new home in Halifax while you wait on your current home to sell. These loans can span the financial chasm between buying and selling but come with their costs and considerations.

* Contingency Offers: Propose an offer on your next home that’s contingent on selling your existing one. This strategy can safeguard you from the financial strain of holding two properties. However, it's worth noting that in competitive markets, sellers might shy away from these conditional agreements.

The decision to buy or sell first is complex and deeply personal, influenced by current market trends in Halifax, your financial health, and how much uncertainty you can comfortably handle. Equip yourself with all the facts, evaluate your financial flexibility, and consider the degree of risk you're willing to assume. With a thoughtful approach, you can navigate your path to a successful home transition in the Greater Halifax area, crafting a strategy that aligns with your priorities and peace of mind.

Thinking about selling your home?

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